To send content items to your account,
please confirm that you agree to abide by our usage policies.
If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account.
Find out more about sending content to .
To send content items to your Kindle, first ensure email@example.com
is added to your Approved Personal Document E-mail List under your Personal Document Settings
on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part
of your Kindle email address below.
Find out more about sending to your Kindle.
Note you can select to send to either the @free.kindle.com or @kindle.com variations.
‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi.
‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
This chapter explores the link between investment tools, investment beliefs and industry conventions to the interpretation of fiduciary duty. There is no hard rule about what is, or is not, in the best interest of beneficiaries and as such, it will always come down to judgment. It is interesting to see over recent years the beliefs that underpin investment decisions being challenged and evolving to support a long-term investment horizon and the integration of environmental, social and governance (ESG) factors into decision-making. This chapter argues that a combination of new tools, evolving beliefs and industry conventions are integral to supporting a wider interpretation of fiduciary duty. While some challenges remain in applying new tools and moving from beliefs into action, the building blocks are in place for change to be meaningful and sustained.
Current investment theory and the interpretation of fiduciary duty
Trustees have a fiduciary duty, or legal responsibility, to act in the best interests of their beneficiaries. “Acting in the best interest” is about ensuring that beneficiaries’ interests are protected and enhanced by the trust. If beneficiaries believe that their best interests have not been protected or enhanced, trustees can be sued for a breach of fiduciary duty and potentially held liable. Many trustees in pension funds and charities don’t have specialist investment knowledge and there is generally no legal requirement for them to do so in most countries. For example, in the UK there is only the requirement that they “obtain proper advice” (Myners Review 2001: 5). As a result, most trustees rely heavily on external advice from investment consultants and internal investment executives who advise on strategy and manager selection.